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Which term explains what happens to the national economy when household spending exceeds savings?
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∙ 12y ago
prosperity
Wiki User
∙ 12y ago
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What is the largest spending component of GDP?
Consumption is largest spending components of GDP.It consists of private(household final consumption expenditure) in the economy.
Is spending good for the economy?
Spending money is what defines an economy. If we were all self-sufficient, the economy would collapse.
Who argued that national governments should increase their spending to stimulate the economy during an economic recession?
John Maynard Keynes
What is the largest component of total spending in the US economy?
consumer spending
What is the opposite of economy word?
spending
What is the largest spending component of GDP?
Consumption is largest spending components of GDP.It consists of private(household final consumption expenditure) in the economy.
Which of these explains the way John Maynard Keynes viewed government's role in the economy?
He advocated a strong role of government in managing the economy by adjusting spending levels and tax rates.
How does deficit spending impact national debt?
Deficit spending is spending money raised by borrowing. It is used by governments to stimulate their economy during times of depression or economic slow-down. Unless the borrowing is repaid, deficit spending will increase the national debt.
Is spending good for the economy?
Spending money is what defines an economy. If we were all self-sufficient, the economy would collapse.
Who argued that national governments should increase their spending to stimulate the economy during an economic recession?
John Maynard Keynes
What is an antonym for economy?
spending
What is the largest component of total spending in the US economy?
consumer spending
What is the opposite of economy word?
spending
How can the economy be fixed?
To fix the economy, we have to stop spending and start saving.
What should have the government have done to to help the economy during an economic downfall?
Nothing, the economy is cyclical. It goes up and down naturally. By spending a ton of money on "Stimulus" Packages to "fix" the economy they increased the national debt and decreased the overall well being on the US economy.
How do increases in government spending affect the economy?
It depends on what they spend on. If they spend on infrastructure for instance then more people end up being paid for goods and services, this in turn leads to more spending on other things as the money is spent making the economy more vibrant and at the same time improving the local economy to produce more efficiently. If government spending is increased in the military and on weapons very little of it will find its way back into the national economy and there will be even fewer advantages in future infrastructure .
How is fiscal policy controlled?
Taxes, and government spending. Increasing taxes will decrease consumption and supply. Lowering taxes will increase consumption and supply. Increasing government spending will increase national consumption, and decreasing government spending will decrease national consumption. The economics AD-AS model shows a visual representation of the effects of fiscal policy on the economy if you are further interested.
